Expats finally have some good financial news as the Pound soars to a four-year high against the Euro.
One euro is now worth just 77p as the rate has surged to €1.28 for a Pound.
The euro is also slumping against the US dollar – with the rate slipping to $1.22.
The problem for expats is whether to exchange currencies or hold their nerve and wait to see if the rate shifts even more, as currency experts are suggesting is likely.
For an expat buying a home in France or Spain, the numbers have all changed in the past year.
A budget of £250,000 could have bought a home valued at €282,500 to spend in late 2008, but today the same £250,000 is the equivalent of €318,500.
Buyers have the chance of trading up location and properties without compromising on budget.
“The optimism we saw after the last summit has faded once again,” said Darragh Maher, foreign exchange strategist at HSBC. “We’re back in a familiar environment. The pound has strengthened not because people are particularly loving sterling but because people are particularly hating the euro.
“For the currency markets, it’s still this idea of being an ugly contest. Sterling has its flaws and vulnerabilities but at the end of the day it’s not the euro. For now that’s sufficient reason for it to outperform.
“Whenever we see exchange rate moves of this scale, there is obviously value; the euro has become cheaper. For the most part, it does make things cheaper for people travelling abroad. The difficulty is, it could offer yet more value next week.”
